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Personnel Today

Dealing with red tape costs UK business £20bn

by Personnel Today 25 Mar 2003
by Personnel Today 25 Mar 2003

The
time and money employers spend dealing with red tape is spiralling out of
control, the latest research finds.

A
survey of more than 200 businesses by Peninsula reveals the overall cost of red
tape to business increased from £19.24bn per year in 2001 to £20.73bn last
year. It is anticipated costs will jump again during 2003 to £21.36bn.

The
amount individual companies spend on complying with new legislation has
increased year-on-year from £18,242 in 1997 to £26,762 last year.

The
average time employers spend dealing with HR issues and red tape has also
climbed from three hours a week in 1997 to nine hours in 2002.

Peter
Done, managing director of Peninsula, said the survey shows the Government
needs to change the way it introduces new legislation.

"How
can the Government expect employers to run a successful business while trying
to cope with constant new employment legislation, the threat of a tribunal and
a substantial amount of their time diverted from their primary role," he
said.

The
study reveals that more than three-quarters of employers think the Government
does not do enough to help business tackle red tape.

www.peninsula-uk.com

Rising
cost of red tape

Annual
cost for individual firms to comply with new legislation:

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1997:
£18,242
1998: £19,347
1999: £20,377
2000: £22,455
2001: £24,321
2002: £26,762

Source:
Peninsula

Personnel Today

Personnel Today articles are written by an expert team of award-winning journalists who have been covering HR and L&D for many years. Some of our content is attributed to "Personnel Today" for a number of reasons, including: when numerous authors are associated with writing or editing a piece; or when the author is unknown (particularly for older articles).

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